GST bill not listed on Day 1; BAC to take final call today

Sanjeev Pargal
JAMMU, June 16: As uncertainty prevailed over implementation of Goods and Services Tax (GST) in Jammu and Kashmir from July 1 at par with all other States, the draft legislation of GST will not be moved in the Legislative Assembly tomorrow, the first day of Special Session called by the Government.
Official sources told the Excelsior that in the absence of any business list given to the Assembly Secretariat by the Parliamentary Affairs Ministry, the Assembly has listed only Obituary Reference of six persons tomorrow after which the House would be adjourned
However, the time period for which the Assembly would be adjourned tomorrow by Speaker Kavinder Gupta, would be decided by the Business Advisory Committee (BAC), which would meet in the Legislature complex at Srinagar, the summer capital of the State, at 10 am tomorrow.
With introduction of GST bill not listed as business item on first day of the Assembly session, sources said there was uncertainty in the State Government on when to introduce the bill. While the BJP was pressing for passing of the GST legislation to ensure that ‘One Nation, One Tax’ regime was rolled out on July 1 at par with the country, the PDP, though not averse to switching over to new tax regime, wanted consensus to be evolved on it and all stakeholders taken on board before it was passed by the Legislature.
According to sources, the BJP has agreed to the PDP proposal to set up an All Party Committee (APC) headed by former Finance Minister and PDP MP from Baramulla Muzaffar Hussain Baig for consensus on the GST. However, it wants the APC to complete its task within stipulated period followed by the Legislature nod so that Jammu and Kashmir joins entire country when the new tax structure is rolled out on July 1 in the entire country.
Sources said the PDP too was in favour of implementation of the GST from July 1as the State can no longer live in isolation but it wanted all stakeholders on board. This, according to sources, could lead to deferment for few days the Legislature Special Session, beginning tomorrow.
While BJP’s open support to the GST is known, Finance Minister and PDP leader Dr Haseeb Drabu has also been supporting implementation of new tax regime allaying apprehensions raised from some quarters that the GST would in no way erode fiscal autonomy of the State.
Law Minister and PDP leader Abdul Haq Khan today also supported the GST saying its implementation in the State would in no manner compromise the State’s special status. “By debating legislation in the two Houses, the Government is reiterating supremacy of the State Legislature,” he said.
Sources said the meeting of Business Advisory Committee of the Assembly tomorrow morning seems to be a mere formality as the Government has almost decided to adjourn the session for few days. In tomorrow’s business in the Assembly, Obituary reference of six persons has been listed, who including GC Saxena, former Governor, Ali Mohammad Naik, former Speaker, Rangil Singh, former Minister, Syed Nizam-ud-Din Shah, ex-MP, Rishi Kumar Koushal and Shanti Devi, ex-MLAs. However, the timing for which the session would be adjourned, was likely to be decided by the BAC tomorrow morning before start of the session.
Meanwhile, BJP today held its separate meeting in the evening in which all party Ministers, MLAs/MLCs and senior leaders including State president Sat Sharma ‘CA’ and Ashok Koul among others were present.
Sources said Deputy Chief Minister Dr Nirmal Singh gave detailed briefing to the party leaders on stand taken by the BJP in and out of the Cabinet on the GST. He told the party leaders that the BJP wants roll out of the GST in entire country including Jammu and Kashmir on July 1. However, at the same time, he said, some time could be given for evolving consensus on the bill.
The BJP meeting also discussed prevailing political and security situation in Jammu and Kashmir.
Elaborating on the GST, Law Minister Abdul Haq Khan said under Section-5 of the Constitution of Jammu and Kashmir the State is free to levy any additional tax or new taxes.
He said it is ironic that the political parties that are today crying hoarse over the implementation of GST in J&K, facilitated extension of 46 Constitutional Amendments of the Constitution of India to the State.
“Not a single time, the State Legislature was taken into confidence. This is first time when the State Government for the sake of transparency and ensuring supremacy of our own Legislature decided to deliberate in the State Legislature regarding the form in which the GST would be introduced in the State,” he added.
Referring to the criticism that the State would be losing power of determining rate of tax or altering rate of tax, Khan said, “if anybody’s power gets affected in GST, it is the Centre which has lost the power of determining, altering the tax rate of CST, Central Excise Tax or Service tax to the GST Council. GST Council has 2/3rd majority of the States and without the consent and approval of the States, Centre cannot move an inch in this area”.
Referring to the 16th GST Council meeting held on June 11, 2017, Abdul Haq asserted that the GST Council altered the rate of proposed GST tax on 66 items and all of them were approved on the proposals moved by different States.
Citing the tremendous economic benefit that the general masses of the State will gain from GST, Abdul Haq appealed all sections of the society not to fall prey to the mischievous propaganda launched by those people who do not like to see economic prosperity coming to the State.